The War Drums Now Deafening
By Chukwudi OHIRI
Three months after President Goodluck Jonathan signed the minimum wage bill into law, many state governments appear adamant over its implementation and the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) under the auspices of the organized labour are set to engage the defaulting states in a major show down that is capable of grounding the economy of the entire country. The ultimatum issued by the NLC and the TUC would expire by 15th of July if negotiations with the FG and the respective states fail to reach an agreeable compromise.
The Trade Union Congress (TUC), in a communiqué issued and signed by the five South-South states Chairmen at the end of its South-South Forum held at the Banquet hall, Aldgate Congress Hotel in Port Harcourt last month appealed to the Governors from the five states namely; Rivers, Akwa Ibom, Delta, Bayelsa and Cross River, to adopt and implement the new salaries for the civil servants in their various states. While thanking the President for the kind gesture, the communique also appealed that the new salary structure payment commences by ending of July. "We equally appeal to the South-South Governors, who are well-known for their Labour friendly disposition to adopt and implement the new salaries for the civil servants in their various states”, the communique read in part.
During the electioneering campaigns, some of the governors were either tacit or evasive in sticking out their neck on its willingness to pay the new minimum wage for obvious reasons. Now, with the elections over, many of the governors are busy citing reasons why the approved sum will not be feasible and some hell bent on not paying the minimum wage because of the financial circumstances of their respective states.
Aware of this flagrant resolve by some of the state governments to ignore the implementation of the N18, 000.00 national minimum, the TUC issued serious threats to any state that fails to abide by the law on the Minimum wage rumpus. The congress through its president Peter Esele and John Kolawole, TUC secretary-general, also called on President Goodluck Jonathan and the National Assembly to immediately “take all necessary actions to improve workers’ wellbeing through a new wage structure that will affect every worker.” To ensure effective implementation of the new national minimum wage in both public and private sectors, the congress says it would “soon issue a directive to all its organs, affiliates and states’ councils to formally request the commencement and implementations of the agreed and legally binding new wage structure.” They expressed great worry over the disagreement already building up and likely to escalate from non-implementation of the national minimum wage Act as amended by some state governors. Esele and Kolawole urged all the states to desist from any action. They said that the congress viewed such comments as insensitive, selfish and without regards to the workers, who are under-paid despite their wealth of experience and contributions towards national development, as against their political appointees’ counterparts, who by the end of the month go home with huge salaries and other entitlements. Esele said: “As a responsible labour federation that holds its members in high esteem, we can no longer keep quiet to such negative statements that are capable of throwing the entire labour market and our nascent democratic experiment into utter confusion… It is also capable of further heating up the system that is already saddled with such issues as the Peoples Democratic Party (PDP) zoning controversies and the jumbo pay packages of members of the National Assembly”.
On their part, the governors, speaking through its Chairman, Governor Rotimi Amaechi of Rivers State had stated that without the review of the current Revenue Allocation Formula and removal of petroleum subsidy, it will be difficult for most of the governors to implement the new minimum wage structure of N18, 000.00 saying: “On the issue of the new minimum wage, members recognised the amended Minimum Wage Act as a valid law. However, the implementation will pose considerable challenge to a number of states. Consequently, members resolved to: “Engage Labour in a holistic manner so that they can jointly agree to a common implementation framework; “Review the Revenue Allocation Formula; immediate removal of the petroleum subsidy; the constitution of a committee to determine the financial implications and work out the implementations details; examine the realities this law imposes on the states and its implications for the workers.”
In a swift response to the stance of the Chairman of the Nigerian Governors’ Forum, the organized Labour through a statement by the NLC Vice-President, Mr. Issa Aremu clarified that “the new wage is the result of collaborative effort between the federal, states, the private and public sectors representatives that included both the formal and informal sectors. He said that all the stakeholders mentioned above were actively involved in all the deliberations of the panel” and so cannot hinge its implementation on any new Revenue Formula. As such, “if there is a new revenue allocation formula tomorrow, there is bound to be a new minimum wage higher than the current N18, 000. “The point cannot be overstated; the new N18, 000 minimum wage is a product of painstaking two-year negotiation and consultation by the Tripartite Committee on the National Minimum Wage. “Critical stakeholders that negotiated the new rate included State Governments, Federal Capital Territory Administration, Organised Private Sector, Small and Medium Enterprises as well as informed opinions drawn from key institutions and professional bodies like Central Bank of Nigeria, the Nigeria Institute of Social and Economic Research, the National Productivity Centre, National Planning Commission, Revenue Mobilisation, Allocation and Fiscal Commission (as well as Nigeria Association of Small and Medium Enterprises…The N18,000 minimum wage is dependent on the current revenue allocation formula among other economic and social fundamental macro factors like the oil revenue, cost of working and living, non –oil sector performance, labour productivity and general level of poverty” according to the statement. On his part, Owei Lakemfa, the acting general secretary of the Nigeria Labour Congress (NLC) described the governors’ position as diversionary and unacceptable insisting that that there is no state in the country that cannot afford to pay N18,000 as minimum wage. He warned that “to remove petroleum subsidy is to ignite the system.”
The executive Governor of Zamfara State, Alhaji Abdul’aziz Yari Abubakar in a recent interview with journalists stated categorically that “no state in the north, not even Kano, can implement the N18, 000. 00 minimum wage”. He opined that they would sit down with President Jonathan to officially state their stand as a way of seeking amicable solution to the impasse. He further argued that a state like Lagos, which generates about N23 billion as monthly internal revenue alone can easily afford to pay the minimum wage unlike Zamfara that generates N120 Million and Kano (which is about the highest in the North) generating N1.8billion monthly. “As of today,” he said, “we pay N1.1 billion as our wage bill and I have inherited a work force of about 28,000. By the time we multiply 18,000 by the number of workers in Zamfara, we will be looking at a bill of N3 billion and the total income of the state is between N2.3 billion and N2.5 billion”.
Earlier, all the five eastern states governors, after meeting in Enugu last month said they can’t pay the N18000 minimum wage unless there is a review of the revenue sharing formula in favour of states. The governors announced that no workers in the states should expect the new minimum wage until such a time when the Federal Government will address the revenue sharing formula.
The south-south governors on their part also met in Port Harcourt, Rivers State shortly after the South Eastern governors. In a rather diplomatic language agreed that their states could pay the new wage, but that the Federal Government will have to review present revenue formula speedily. According to the governors, “We have agreed to pay the new wage but we are asking the Federal Government to review the revenue because no state in the zone can pay the new wage under the present revenue sharing formula.
Both the NLC and the TUC are already sharpening their sword for a duel in the various defaulting states. The NLC has sent strong warnings to state governors to pay the legally stipulated minimum wage or watch out for battle. They insist that going by their findings with facts and figures, all the states in the Federation could pay even the initial N52.200 it demanded not to talk of a paltry compromise N18,000.000 it termed ‘a starvation wage’. TUC President General, comrade Peter Esele has warned that the workers would go to any length it deems viable against Governors who refuse to pay by June, the expected implementation date. He said, “We shall go to any length to tackle governors who have decided not to pay the minimum wage. Those who do not want to obey the laws of the land are inviting anarchy.” Abdulwaheed Omar, the National President of the NLC regretted that the governors are suddenly reneging in an extensively negotiated and concluded agreement of which they were a party to. He lamented that “no relationship whatsoever between the governors demand for a review of the revenue formula with the implementation of the new national minimum wage. If I take you back memory lane, after workers demanded for a new minimum wage, the Federal Government established a tripartite committee, comprising government, employers and workers which worked for over one year negotiating, discussing and analysing and eventually came to a conclusion and a agreement of N18000 was reached as a new minimum wage. And these governors were adequately represented. I remember that the Lagos state Governor, Gombe state Governor and Enugu state were supposed to be on that tripartite committee. The only unfortunate thing was that none of them ever appeared in person but were represented. “However, whatever the case may be they were there as governors representing other governors as stakeholders. So, for anybody to say that unless the revenue sharing formula is reviewed is out of the question. We will support any revenue allocation review that will enhance good governance and will ensure that the welfare and the wellbeing of the people are also reviewed but not giving it as a condition for the implementation of the new national minimum wage”.
In the South-West, apart from Lagos State Government that had earlier approved N18, 780 as minimum wage for its public servants many other states appear obstinate on their stand leaving the organized labour with no choice than massive protests. Oyo and Ondo state workers are leading the pack in the strike action that will soon engulf the entire nation. As at press time, Mightier than sword was unable to reach the TUC president, Comrade peter Esele again to ascertain with more certainty, the exact plan of the TUC as the clock ticks. One Wunmi, a staff of the TUC at its Maryland office said he had traveled out of the state.
Following the two weeks ultimatum by the Organized labour, some of the governors have come out to say that they will pay while many others have remained adamant. Those that accepted to pay gave conditions that will invariable affect such acceptances ranging from downsizing of the work force, jettisoning developmental projects to negotiating the take home of higher level workers since the law only mentioned the minimum of N18,000.00.
Comrade Adams Oshiomole has declared that it is illegal not to pay the minimum wage. Other commentators have said that negotiating the 18,000 is a breach of the constitution as Ondo workers deed. They argued that "it is criminal for people to agree to breach the constitution".
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